Nestle share price up 2 percent as share issue is approved by the board; see details

 

Nestle share price up 2 percent as share issue is approved by the board; see details

Nestle bonus issue:Nestle scrips jumped 1.6 per cent to 2,444.65 in trade on June 26, 2025 on the BSE. At 10 28 AM, Nestle share price traded up 0. 74 per cent to Rs 2422. 20 per share on BSE. The BSE Sensex gained 0.48 per cent to 83,153.38 in comparison.

Market capitalisation of the firm was at 2,33,933.45 crore. It had reached 52 weeks high of 2777 per share and its low was 2115 per share in 52 weeks.

The Nestle shares have fallen 5 per cent in just a span of one year, against the 5 per cent increase in Sensex.

Nestle bonus issue details 

Nestle shares were in demand following the decision by the board of directors to issue bonus shares to the tune of 96, 41, 57, 160 rupees. To meet the above purpose, the company has resolved to issue 96,41, 57, 160 equity shares of face value of 1 each.

According to the filing, the bonus will be issued in a ratio of 1:1, i.e., one bonus equity share of the face value of ₹1 each for every one fully paid-up equity share of the face value of ₹1 each.

"Issue of bonus equity shares in the ratio of 1:1, i.e., one (1) bonus equity share of face value of ₹1/- each for every one (1) fully paid-up equity share of face value of ₹1/- each, held by the members of the company as on the record date, by capitalising a sum not exceeding ₹96,41,57,160/- (Rupees ninety six crore forty one lakh fifty seven thousand one hundred and sixty only) out of the retained earnings of the company, subject to the approval of the members of the company," the filing read.

What is a bonus issue? 

Bonus issue is one method through which company uses to reward its current shareholders as it issues more shares without any cost. The bonus shares will only go to the existing shareholders with the stock of the company prior to the record date. When one purchases the stock on and after the record date, they will not get the bonus issue.

Other than the issue of bonus, the board also passed a Memorandum of Association to expand the authorised share capital 100 crore rupee to 200 crore rupees.